Huanya strategy: loose again expected warming pounds trend is still not optimistic

The attention of the eu summit ended this week, but didn't give a substantial content, on the first day, European Union leaders have a single eurozone banking supervision mechanism reach a consensus. This mechanism aimed at isolating crisis under the background of the connection between the countries and bank, and directly solve Banks are faced with the problem, the mechanism is expected to next year can start implementation. However, German chancellor Angela merkel doesn't seem too optimistic. She says, the new banking regulators need to take the establishment of a few months time, event gradually propulsion is very important. However, investors are more concerned about the Spain and Greece debt problem seems to be aside. The second day summit also did not get more news essence. The European Union leaders, points out that in the near future for the Greek government and international three parties (the European Union, the European central bank and the international monetary fund) approved negotiations, saying the country in economic went back on track on the road has made a solid pace, appreciate the Greek government's budget cut effort.
The eu summit quietly comes to an end, but the market about the bank of England will again to expand the scale of QE expected warming, the bank of England (BOE) on Wednesday (October 17,) published on October of the central bank's monetary policy committee (MPC) meeting minutes shows that, although the members agree that no further expansion in October to buy assets scale, but to the future similar operation effect and view has objection. The bank of England MPC to 9-0 vote maintain quantitative easing scale in 375 billion pounds is changeless, and maintain the current level of interest rates 0.5% of the index. And the results also accord with market participants expected. And meeting minutes pointed out: "the members to further easing prospects and possibility of disagreement exists. Some members think through the asset purchase economic stimulus method is still left a lot of policy space."
British bureau (ONS) will be released on Thursday in the UK in the third quarter gross domestic product (GDP) initial data. British second quarter economic season rate decline 0.4%, if the third quarter data showing the economy still faces the risk of recession, will flare up detonate market for the bank of England in the year will further increase the strength of the loose expectations, and by the end of the distance with only two months time, pounds running war or rugged bumpy.
Pounds the dollar exchange rate at the beginning of last week rapid rise to 1.6176 high, but in during the summit, the exchange rate from high slid below last week low to 1.5995 low, the exchange rate closing at 1.6004, the dollar rose last week pounds big fall, still maintain concussion quotation, today after the opening rate last 1.6 passes above finishing, technical index MACD blue kinetic energy cylinder is still in the 0 axis below, again present amplification sign that rate still faces downward pressure, at the same time stochastic turn down again running, this week of exchange rate movements is still not optimistic, below the key support look at 1.6000-1.5975 area, if the rate fell below the area, it will further dipped below 1.5900 near gates, above resistance to see last week high of 1.6176 and 1.6200 near the gates. This week the risk of the market, but the market focus of British GDP data, and interest rate in the United States declaration and us GDP data, all these will have a significant impact on the currency markets.